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Published by , 2017-05-13 07:44:18

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In |uly, the Direccion de DesarrolloUrbano de la had beenmisledby LP and that new permitswould be
Municipalidad de Lima approved the preliminary required.He noted that the original applicationshad

studiesconcerningthe industrial use of the LP prop- beenfor an I-2 industrial usepermit,3but he saidthat

erty. The DireccionGeneralde Obrasde la Municipal- LP was an I-3, a more stringent designationgenerally
idad de Lima, however,addedthat district authorities reservedfor mining and petroleumoperationsA. licorp's
such asthe municipality of Chorillos could not grant pastaplant,in contrast,wasdesignatedonly asan I-1.
provisional construction permits when no study on
the urban impact had been submitted.The mayor of Andrade also hired the International Union for
the Conservationof Nature (IUCN), an international

Lima announcedthat he would seeka zoning change organization dedicated to environmental conserva-

for the area around the Pantanosde Villa to protect tion. It turned out to be a thorough investigation,

the wildlife in the swamp becausethe presenceof studying the impact of all the facilities bordering on

industrial plants seemedto be irreversible.Meanwhile the swamp.The only suggestionit made,however,was
the governmentof Chorillos, pursuant to an order of to closean abattoir next to the LP plant. There were

the municipality of Lima, issuedan order to stop con- no recommendationsthat significantly impacted LP's

struction. The samemonth, the Pantonasde Villa was plans.

declareda protectednatural wildlife preserve. Andrade also accusedLP and Luksic himself of
In earlyAugust,LP requestedthat its construction
collusion with Camet,whosesons'construction firm
plans be approved,but the governmentof Chorillos was building the LP factory.Apparently,there was no
repeatedits order to suspendconstructionunder pres- love lost betweenCamet and Andrade.One reasonfor
surefrom the municipalityof Lima that permitsshould this wasthat when Andradeneededto raisemoney for
not be issuedwithout the completionof all necessary the city of Lima, the bankswanted federalguarantees

procedures.LP respondedthat for technical reasons' that were ultimately denied by Camet in his role as

constructioncould not be completelystopped.It mean- minister of economics.

while requestedan approval of urban fit and submitted On October 23, the municipality of Lima again
a new environmentalimpact statement.The Direccion orderedall constructionto stop.After LP applied for
Generalde Obrasde la Municipalidadde Lima decreed reconsiderationo, n December16 the municipality of
that constructioncould continue.INRENA declaredthe Lima approvedthe continuationof construction.Three

environmentalimpact statementto be sufficientwith days later Mayor Andrade presented legislation to

only a few minor changesthat wereimmediatelyincor- reconsiderthe approval,which had the potentialto win

porated into the plans. InterestinglS INRENA had with just the votesof the membersof his group, and

suggestedthe ISO 14001as a voluntary criterion for referredthe LP file to a technicalcommission'By this
acceptanceb,ut ultirnatelyit would adopt it as manda- time, most of the investmenthad been made in the
tory. As required, LP had an outside environmental plant. Thinking that Andradewas simply posturingto
engineering firm submit an Environmental Impact show his strength, the LP managementrenewed its

Studyto INRENA. commitmentto pursueits objectives.

August brought another set of problems.Alicorp In an advertisementhat ran in the local newspa-

accusedLucchettiof economicdumping and filed suit. pers, Lucchetti maintained that it was in compliance

While this suit was later to be dismissed,another with the environmentalstandardssetout by the city of

bombshellcameseveraldayslater when the Lima city Lima. The city of Lima was, however,quoted in the
council,under the guidanceofAndrade, held that Luc- samepapersas sayingthat the concernsover the Los

chetti could not operate in an environmentallypro- Pantanosde Villa nature preservepreventedit from

tected area and ordered all work in the area to stop giving the plant its stamp of approval.Severalother

eventhough by that time the factorywas almost com- N G O sa l s op r o t e s t e dt h ep l a n t ' sc o n s t r u c t i o n . 4
"Lucchettiis still importing pasta,so they canjust
FI pletely built. Purportedly on the same day that the

a Lima city council revokedthe operation permit, the continue to do that," said Bromwin Griffith, a sector
city receiveda largedonation from Alicorp. analystwith ING Baringsin Lima. "This slowsthings
(.) down for them, but it won't be enoughthat Alicorp or
Andrade also began a new strategyto securethe

162 plant's removalby calling for Peruviansto boycott all another competitor will be able to step in and take
Lucchetti products. Meanwhile, a number of local advantageunlessit lastsa very long time."s

organizationswere encouragedto picket in front of Meanwhile,LP continued to gain ground in the

the newfactory. Peruvianpastamarket. Market sharehad grown dur-

In SeptemberA, ndrade formed a commissionto ing 1997 to 25 percent in Peru and 30 percent in

investigatethe factory and said that the city of Lima Lima, all from pasta imported from Chile and Italy.


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